5 Unusual Ways You Can Borrow Money for Your Business


2. Factoring

Factoring is a process where the lender or the factor will give an advance up to 75-80 percent of the total amount. And the remaining 20-25 percent is called as "reserve". The remaining amount is given to the lender depending upon his ability to repay the amount. If you are not repaying the amount on time, you will increase the amount of the required reserve.

The benefits of factoring is that, you will get instant accessibility to cash, that is within 10 days, and if your business is growing, you will have an advantage of getting more amount to further improve your business. In the recent years these factors are available on internet as well.

The risk the lender would face is when he does not know exactly with whom he is dealing with. To keep yourself on a safer side, it’s always better to deal with the person who you know or from reputed factors.